Acquisition Of Cs Computer Services Holdings
Wednesday, 28 April 2004
PROPOSED ACQUISITION OF CS COMPUTER SERVICES HOLDINGS
Reunert shareholders are referred to the trading statement and cautionary announcement issued today by CS Computer Services Holdings ("CSH"). Reunert has entered into discussions regarding a potential offer for the shares in or all the assets and liabilities of CSH for an effective cash consideration of 35 cents per CSH share.
Gerrit Pretorius, Reunert Chief Executive commented: "Reunert is a significant minority shareholder in CSH. We invested in CSH because we believed that the business, in the right environment, could prosper. That environment is now absent for various reasons. Accusations and allegations of wrongdoing and unethical business practices have been made. Significant write downs and adjustments to the accounts are anticipated.
"On a positive note, Reunert is impressed by the skills and motivation of the staff. We have not come across a single customer that complained about operational execution. For that reason Reunert is anxious to ensure that the business of CSH will strengthen and prosper. To achieve that in a listed environment, given the current situation, will be difficult.
"Worldwide as CSH's BEE partner fulfils an important role and should continue to do so in future. Reunert therefore proposes that the intended offer excludes Worldwide."
An independent advisor will be appointed by CSH, following receipt of a firm offer from Reunert, to recommend whether the transaction is fair and reasonable to minority shareholders. Pretorius added, "Shareholders should bear in mind that, in the event that Reunert does not make an offer, they may get a lot less."
He concluded: "I am hopeful that Reunert will soon be in a position to make a firm offer, subject to the conclusion of legal agreements between Reunert, Worldwide and CSH".